Gold: RES Corporation dividends 24% lower
MBABANE - 7he 5oyal Eswatini 5ES Corporation, led by Managing 'irector M' 1ick -ackson, has forecasted dividends of E186 million during the financial year, which ends on March 31, 2023.
7he dividend is 24 per cent lower than the previous financial year, citing a challenge in the performance of the company.
5ES Corporation on )riday issued a cautionary statement advising shareholders that due to the difficult trading conditions, their earnings for the year ending March 31, 2023 were anticipated to be materially lower than those of the year ended March 31, 2022. Shareholders were, therefore, advised to exercise caution when dealing in the company’s shares.
Shareholders of 5ES Corporation according to the company’s official website are 7ibiyo 7aka1gwane 53.1 per cent , 5C/ )oods 2 .1 per cent , 1igeria Government 10 per cent , Government of Eswatini 6.5 per cent and individuals 1.3 per cent .
SHAREHOLDERS
According to the company, the transfer books and register of members will be closed from 2ctober 15, to 2ctober 21, 2022 both days inclusive for the purposes of determining those shareholders to whom the dividend shall be paid.
,n their condensed interim results for the six months ended September 30, 2022, 5ES Corporation Chairperson 'r 7hemba Absalom 'lamini said due to the seasonal nature of the business, whereby the crushing season ends in 'ecember, the expected results for the second six months would be significantly lower than those recorded in the first six months.
+e said cane crushed, at 2.1 million tonnes, was 20 per cent lower than cane crushed in the same period last year.
“7his is primarily due to curtailed harvesting operations on account of unprecedented high winter rains. Area harvested was 26 per cent lower than for the same period last year. :hile a return to normal production levels had been anticipated for the current season, cane yields did not reach their potential. Estate sucrose yields tonnes sucrose per hectare - ts ha showed a slight improvement at 13.43ts ha compared to 13.27ts ha for the same period last year,´ he added.
CONDITIONS
7he chairperson said the current year crop has been negatively affected by adverse climatic conditions that included low radiation during the peak growing period, cane lodging on substantial areas of the estate, cane Tuality degradation on ripened fields due to the interrupted winter harvesting operations and a conducive climate for pests and disease infestation.
Year
Cane crushed
Sugar production
+e said sugar Sugar sales
production was
Sugar exports
conseTuently 23 per cent lower at 271 221 tonnes, 6 pol sugar, as compared to 351 310 tonnes, 6 pol sugar for the same period last year. Ethanol production at 14.3 million litres was 12 per cent lower than the production in the same period last year.
“7his is due to lower production resulting from lower molasses availability and using one distillation plant while the other one was being upgraded. Ethanol sales at 12.2 million litres were 14 per cent higher than the prior comparative period due to scheduled sales ex stock.´
“7otal comprehensive income attributable to the owners of the company amounted to E222.4 million. 7his is 57 per cent lower than the results achieved for the period to September 2021,´ he added.
7he M' further mentioned that this were imperative for their growth.
+e said the ever rising cost to procure the products affected their performance in the industry as a majority were not able to afford.
“:hen you go to the shops to buy these chemicals, you come back empty-handed or with fewer items as the cost of purchase is constantly on the rise,´ he added. 'lamini also mentioned that the processing plant in Ubombo Sugar has assisted the smallscale cane growers by providing a discount when purchasing fertilisers and other chemicals. +e said this move by Ubombo Sugar contributed to the increase in performance by the farmers in the current reporting period.
Eswatini Sugar Cane Growers Association CE2 'r. Sipho 1kambule said cane growers farming input to the economy was about E1.5 %illion in the financial year ended March 2022. 2020 5 759 016 725 817 717 630 264 490 2021 6 001 618 684 563 709 835 267 139
MAJORITY
2022 (mt) 5 444 050 613 139 639 874 210 904
decrease was due to the lower sugar as aforementioned, in an inherently high fixed cost environment, as well as the impact of global inflationary pressures due to the ongoing 5ussia Ukraine war affecting all oil-linked commodities such as diesel and agrochemicals.
PRODUCTION
“3leasingly, the average sugar price has been nine per cent higher than the comparative prior year period due to higher inflation, and reduced volumes into lower priced markets on account of lower production by the local sugar industry.´
“Cash generation for the current interim period has, therefore, been substantially lower than for the prior year comparative period. 7he expansion drive of the group continues in line with our long-term strategic +e said smallscale cane growers contributed about E 00 million to the economy of the country. +e added that the high cost of electricity was a contributing factor to the performance of the industry and urged for government’s assistance.
1kambule said some farmers had procured a solar grid to minimise the cost of electricity but a majority could not afford the latter. “About 15 farmers have joined hands to procure a solar grid which was funded by their own income, we reTuest a subsidy from government to limit the costs,´ he added.
7he CE2 also mentioned that weather patterns were a disadvantage to the use of solar as they were not able to produce enough electricity for the farms. +e further reTuested that government should reduce the cost of